FOR IMMEDIATE RELEASE -- November 06, 2019
Contact: Kevin Kelly (573) 751-9300
Natural Gas Rates to Change for Spire East Customers
JEFFERSON CITY---To reflect estimated changes in the wholesale cost of natural gas as well as a change in the company’s Actual Cost Adjustment (ACA) factor, Spire East customers of Spire Missouri, Inc. d/b/a Spire (formerly Laclede Gas Company) will see natural gas rates change under a filing that takes effect on November 15, 2019.
The ACA factor is a mechanism which tracks any over-collection or under-collection of actual natural gas costs over a 12 month period. The net over- or under-collected balances are subsequently either refunded or collected the next year.
Residential customers currently pay approximately $0.46 per therm of natural gas. Under this filing, the rate will drop to approximately $0.41 per therm. Spire stated in its filing that compared to current rates and assuming normal usage, this change would decrease the average monthly natural gas bill for the typical residential customer by about $2.95 per month. Spire states that such bill impacts may be less or more depending on a customer’s actual usage, which is primarily affected by weather.
Approximately 50% to 55% of a customer’s current natural gas bill reflects the cost of natural gas from wholesale suppliers. The wholesale cost of natural gas (the cost your local natural gas company must pay to its suppliers for natural gas) is not regulated by the Missouri Public Service Commission. The wellhead cost of natural gas is unregulated and is primarily driven by supply, demand and the weather. The Missouri Public Service Commission does conduct an annual regulatory review to ensure that regulated natural gas companies make prudent decisions in securing natural gas supplies for their customers.
Spire East provides natural gas service to approximately 654,390 customers in the City of St. Louis as well as the Missouri counties of St. Louis, St. Charles, Butler, Iron, Franklin, Jefferson, Madison, Crawford, St. Francois and Ste. Genevieve.